PROPOSED BUSINESS STRATEGY FOR PT. GIENDA PUTRA OF FACING CONSTRUCTION INDUSTRY COMPETITION
As developing country, Indonesia continues to boost infrastructure development at both central and regional levels. In the current government the infrastructure budget continues increased from year to year. Not less than four hundred trillion rupiah budgeted Indonesian government in RAPBN 2018 to en...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/36328 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | As developing country, Indonesia continues to boost infrastructure development at both central and regional levels. In the current government the infrastructure budget continues increased from year to year. Not less than four hundred trillion rupiah budgeted Indonesian government in RAPBN 2018 to encourage infrastructure development. The high activity of infrastructure development makes the construction sector in the country experienced a fairly rapid development. However, business competition in the construction industry is getting heavier. Based on BPS data, in 2017 there are 128.570 contractors consisting of various qualifications, e.g. large, small, and medium qualifications. Gienda Putra is construction company who has experience working on various projects ranging from toll road until airport in Indonesia.
Gienda Putra has a pretty good financial performance in construction industry. Company profits always increase from year to year. However, the construction market share in Indonesia is still uneven. The majority of the market share is occupied by big contractors (qualification B). In fact, based on BPS data the number of big contractors is only 2% of the total number of contractors in Indonesia which reaches 128,570 contractors. A small and mid-size contractors with more than 100,000 only compete for 20% of the share. Hence, Gienda Putra needs to increase their grade from middle qualification (M2) into Big (B1) qualification in order to become more competitive company. This research formulates appropriate business strategy for the company growth.
This research with its internal and external analysis with an aim for improving its performance and have the formulation concerns. The implementation of the strategy is the combination of researcher’s SWOT analysis and respondents result of depth interview that are analyzed as TOWS Matrix. Findings in this research generates three main strategies in different level, namely corporate level strategy, business level strategy and functional level strategy.
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